Why Your Annual Financial Review Should Include Your Will and Estate Plan
As we close out the year, it’s an important time to turn your attention towards your financial position. The holidays are approaching, you’ve already spent some time ensuring your finances are in order to close out the calendar year, and you might be feeling pretty well prepared. However, there’s one thing that’s often overlooked:
Your Will.
Estate planning is never a pleasant topic, and at halkin we understand why so many people avoid turning their attention towards their will. In fact, if you have a will and estate plan in place, you’re already ahead of many people. But, if you think drawing up a will is a “one and done” activity, you’d be mistaken. Here’s why you should review your will on an annual basis:
Your financial situation has changed If your will includes detailed instructions on distributing your estate, these should be reviewed and updated annually. Changes could include the sale or purchase of property, updates to your stock portfolio, changed company ownership, a new business, or a new charitable cause you wish to support through your estate.
Your personal situation has changed Personal life changes are a common trigger to update a will and something that you need to consider carefully. Whether there’s been a new marriage, a divorce, a death in the family, the birth of a new child or grandchild, or even an estrangement, your will needs to reflect your changed personal situation to ensure your wishes don’t become the centre of a familial dispute.
You have new health considerations A recent diagnosis is a reason to take pause and review your will to ensure any advance directives or power of attorney continues to reflect your wishes for care if you become incapacitated or unable to make health decisions for yourself. This is extremely important, as once a directive is in writing, your family members cannot verbally overrule these even if you have expressed a different opinion in the meantime.
Reviewing your estate plan annually offers peace of mind for you and your family; having a well-documented and legally binding plan means your wishes will be carried out, and your family won’t need to make difficult decisions during a challenging and emotional time.
Realizing that you need to build a plan and draw up a will for the first time? Here’s what you need to know: an estate plan is a set of documents that includes your will. Your plan might also include
a power of attorney or guardianship in case of incapacity, an advance care directive if you cannot make medical decisions for yourself, and any binding nominations on your superannuation funds.
Your will should set out how your estate and assets will be distributed, address guardianship of any minors in your care, cover charitable donations and bequests, and may also include funeral instructions. You can engage a solicitor to draw up your will for a fee, have a Public Trustee take on this task, also for a fee, or complete a do-it-yourself will kit, which can be purchased in many locations.
If you’re considering the DIY option, you should be aware that an incomplete or unclear will can be judged invalid. It’s wise to have a professional review your DIY will if you choose to take that route.
How can halkin help?
Suppose your financial situation is complex and includes multiple beneficiaries, trusts of any sort, or financial power-of-attorney. In that case, you may want to consider speaking with a financial adviser to be clear on the most advantageous way to set up your estate for your beneficiaries. Speak to one of our experts about reviewing or drawing up your estate plan.
